Japan contemplates embracing more relaxed regulations for the utilisation of artificial intelligence (AI) in contrast to the European Union. The nation's objective is to harness the potential of this technology to drive economic growth and position itself at the forefront of advanced chip development.

Reuters reported that Japan plans to formulate an AI strategy by the end of this year, with a focus on aligning it more closely with the approach taken by the United States rather than adhering to the stringent regulations advocated by the European Union.

An anonymous official disclosed that Japan's inclination towards a more lenient approach could potentially undermine the European Union's efforts to establish its regulations as the global standard. This is especially significant in the context of disclosing copyrighted materials used to train AI systems that generate content such as text and graphics. The official spoke on condition of anonymity due to the absence of authorisation.

According to reports, Thierry Breton, the European Union's industry chief, is presently in Tokyo to promote the EU's approach to AI regulations and strengthen collaboration in the field of semiconductors.

The government official did not disclose the specific areas where Japan's regulations may differ from those of the EU. Professor Yutaka Matsuo, the chair of Japan's AI strategy council at The University of Tokyo, voiced his opinion that the regulations imposed by the European Union are excessively strict. He emphasized the considerable difficulty in accurately identifying copyrighted content utilized in deep learning processes.

“With the EU, the issue is less about how to promote innovation and more about making already large companies take responsibility,” said Matsuo, who also chairs the Japan Deep Learning Association and is an independent director on the board of Masayoshi Son’s SoftBank Group.

The advancements achieved in generative AI, as demonstrated by companies such as OpenAI (backed by Microsoft), are evoking a combination of excitement and concern due to their transformative potential across various domains of business and society. 

Recognizing the potential of AI, as well as other technologies like advanced semiconductors and quantum computers, the United States and its allied industrial democracies have entered into a competitive race with China for their advancement and deployment.

“There are things that really are a concern and I think these things probably should be a concern for any democracy. With likeminded partners and friends like Japan or the U.S., I think it’s important to explain what we did,” Breton said of the EU’s regulatory approach,” Breton said. 

In Japan, the integration of AI presents an opportunity to tackle the challenges arising from a declining population that has led to a labour shortage. Moreover, the adoption of AI has the potential to stimulate the demand for advanced chips.

This aligns with the objectives of Rapidus, a government-supported venture, which aims to produce advanced chips as part of an industrial policy aimed at revitalizing Japan's previous technological supremacy, as reported by Reuters.